SDL's chief executive officer John Hunter is leaving the company “to pursue other business interests”. He spent less than two years in the top job, having previously been SDL’s finance chief. Chairman and founder Mark Lancaster, who was chief executive before Mr Hunter took the reins in February last year, has taken over as interim CEO until a permanent replacement is found.
Canaccord Genuity saw the move as a buying opportunity, arguing that Mr Hunter’s departure would act as an “immediate catalyst for a rebound in the share price”. The shares had tumbled since the group said on October 15 that ongoing litigation could cost the company up to $3m (£1.9m). The group also worried analysts by confirming that technology revenues remained “suppressed”.
Source: The Telegraph
For those of you who are not aware of the “ongoing litigation” that SDL faces, here’s a quick recap:
On October 15th SDL noted that it has a minor ongoing litigation with a former Trados shareholder, claiming breaches of fiduciary duty by former Trados directors on the sale of Trados to SDL in 2005. The company estimates the potential exposure to be between $1 million and $3 million, which if required, will be funded as part of the company's operational cash flow in 2013.
The SDL board believes the case to be completely without merit and expects that it will progress to a court hearing in 2013.
In its Interim Management Statement for the period from July 1 to September 30, the company said most of the growth in the quarter predominantly came from language services, whilst technology revenues remained suppressed.
Source: RTT News
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